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    The new tax year started in April and since then, I have been paid twice. Each time tax was taken out even though I have a personal allowance of £11,000. I am under the assumption that since the new tax year has started, my personal allowance resets, and I shouldn't be getting tax until I've earned £11,000.

    Is this correct?
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    (Original post by mrdoovde1)
    The new tax year started in April and since then, I have been paid twice. Each time tax was taken out even though I have a personal allowance of £11,000. I am under the assumption that since the new tax year has started, my personal allowance resets, and I shouldn't be getting tax until I've earned £11,000.

    Is this correct?
    Yes you shouldn't be taxed, If your salary is under that then give hmrc a call to get your tax code changed
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    It's worked out weekly.

    Some of what you pay will be national insurance. (NI)

    Have you got a payslip which should tell you what your tax code for this year is?
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    Roughly, if you earn more than £916 a month you'll start getting taxed.

    The personal allowance is split over the year.

    If the tax code on your payslip is 1100L then it's correct.
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    (Original post by Mega0448)
    Roughly, if you earn more than £916 a month you'll start getting taxed.

    The personal allowance is split over the year.

    If the tax code on your payslip is 1100L then it's correct.
    Ahhh thanks makes sense now.

    It's just that since I started the job around November, I didn't pay tax any tax what so ever. Why is it that I didn't pay tax then, but have started paying it now on earning over £916 even though my salary is still the same?
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    (Original post by mrdoovde1)
    Ahhh thanks makes sense now.

    It's just that since I started the job around November, I didn't pay tax any tax what so ever. Why is it that I didn't pay tax then, but have started paying it now on earning over £916 even though my salary is still the same?
    Because if you only started work in Novemember then you had your full personal allowance spare to use in just 5 months.

    Now you've got 12 months to use the personal allowance so the amount you can earn per month before tax is lower as they assume you'll be working and earning that amount per month for the whole year.
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    (Original post by claireestelle)
    Yes you shouldn't be taxed, If your salary is under that then give hmrc a call to get your tax code changed
    This isn't true. You'll be taxed as an average - you don't get tax free pay until your limit is reached - it assumes you'll be earning a certain amount per month and averages it.


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    (Original post by mrdoovde1)
    The new tax year started in April and since then, I have been paid twice. Each time tax was taken out even though I have a personal allowance of £11,000. I am under the assumption that since the new tax year has started, my personal allowance resets, and I shouldn't be getting tax until I've earned £11,000.

    Is this correct?
    Hello

    I thought exactly what you stated, but unfortunately it is calculated over the year- the person in payroll who explained it to me ( I get paid monthly) said it is worked out like this

    11000/12 = £916

    So for example If i was to earn £1500 a month my payslip would look a little like this

    Incoming
    Salary £1500

    Expenses
    PAYE= £116.66
    NI (12%) £180

    Net Pay = £1203.34 ish

    This is not taking into account any Salary sacrifice schemes or any pensions schemes people may be in. If you want me to calculate what your payslip should say PM me
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    https://listentotaxman.com/ should give you a fair idea.
 
 
 
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